French music streaming service Deezer has begun trading on the Euronext Paris stock exchange on Tuesday, only to suffer an immediate drop in share price.
The service, which is a rival to Apple Music and Spotify, opened at 8.50 Euros before dropping almost 35% to 5.79 Euros. It currently is sitting at 6.00 Euros.
Whilst Deezer was founded only one year after Spotify, is available in 180 markets internationally, and boasts a 90 million song calatogue, the company has struggled to penetrate a market dominated by Spotify and Apple Music. Deezer has just 2% global reach compared to 31% for Spotify and 15% for Apple Music.
The move for the company to go public comes following their partnership with I2PO, a European special-purpose acquisition company (SPAC). As a result of the merger, Deezer received 143 million Euro in operating funds.
Deezer CEO Jeronimo Folgueira says that the move to list on the stock exchange is part of a strategic plan to break further into the market through innovation and a unique brand.
“Through merging with I2PO and going public, we have created a solid foundation to execute our strategic plan, with the right capital, expertise, and network. With a highly competitive product, a clear strategy, and a renewed and experienced management team, we will make the most of this opportunity to create substantial shareholder value.”
According to the company, Deezer has 9.6 million subscribers, and generated 400 million Euro in revenue in 2021.
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